THE COVID-19 PANDEMIC AND INDIAN PHARMACEUTICAL COMPANIES: AN EVENT STUDY ANALYSIS

Buletin Ekonomi Moneter dan Perbankan ◽

10.21098/bemp.v24i0.1483 ◽

2021 ◽

Vol 24 ◽

pp. 1-14

Author(s):

Chinmaya Behera ◽

Badri Narayan Rath

Keyword(s):

Stock Returns ◽

Event Study ◽

Alternative Model ◽

Pharmaceutical Companies ◽

Study Analysis ◽

Pharmaceutical Sector ◽

Firm Level ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

Although there is a plethora of studies which examine the impact of the COVID-19 pandemic on India’s financial sector, we contribute by investigating the effect of the ongoing COVID-19 pandemic on stock returns of Indian pharmaceutical companies. By employing an event study methodology, our results indicate that the average returns of the pharmaceutical sector are positive during the COVID-19 phase although mixed evidence is found at the firm level. This finding is also robust to alternative model specifications.

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The Impact of COVID-19 on Stock Returns of the Indian Healthcare and Pharmaceutical Sector

Australasian Accounting Business and Finance Journal ◽

10.14453/aabfj.v15i1.2 ◽

2021 ◽

Vol 15 (1) ◽

pp. 5-21

Author(s):

Shivam Mittal ◽

Dipasha Sharma

Keyword(s):

Stock Returns ◽

Event Study ◽

Abnormal Returns ◽

Pharmaceutical Sector ◽

Event Window ◽

Study Approach ◽

Cumulative Abnormal Returns ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

Increasing COVID-19 cases has not only impacted health and day-to-day lives of people, but it has also had a material effect on India’s economic growth. Stock returns of various sectors are evidence of a country’s stagnated growth but the healthcare and pharmaceutical sector might be affected in a different manner. The purpose of this paper is to find out how has this pandemic has impacted the healthcare and pharma stocks. Daily closing prices of sector specific indexes for 233 days ranging from 15 May 2019 to 24 April 2020 have been taken to compare different sectors with our test sector, on the basis of different criteria. This study has applied the widely used event study methodology on our test sector; calculated abnormal returns, cumulative abnormal returns and also tested their significance. Event study approach suggests that there have been significant abnormal returns and cumulative abnormal returns in our test sector (healthcare and pharmaceutical sector) over the event window, though while comparing it with other sectors through another econometric model, the returns are not statistically significant and do not explicitly indicate the same.

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COVID-19’s Impacts on the Kuwaiti Stock Market’s Performance

International Journal of Business and Management ◽

10.5539/ijbm.v16n5p122 ◽

2021 ◽

Vol 16 (5) ◽

pp. 122

Author(s):

Ahmad Al-Kandari ◽

Kholoud Al-Roumi ◽

Meshal K. AlRoomy

Keyword(s):

Real Estate ◽

Stock Returns ◽

Event Study ◽

Consumer Goods ◽

Abnormal Returns ◽

Consumer Services ◽

Study Methodology ◽

Daily Stock Returns ◽

The Impact ◽

Event Study Methodology

This study investigates the impact of COVID-19 pandemic on daily stock returns in Kuwait Stock Market (KSE) over the period from 28 March to 20 April 2020. By applying the event study methodology (ESM) approach, the results reveal that the pandemic has positively impacted stocks of banks, consumer goods and telecommunications sectors. However, oil & gas, real estate, financial, basic materials, industrials, consumer services, and insurance stocks have been negatively impacted by the pandemic. The COVID-19 pandemic's most negatively affected are services and financial stocks. The cumulative average abnormal returns (CAAR) of all sectors were affected negatively by the COVID-19 pandemic.

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The Effectiveness of Trade for Trade Segment as a Surveillance Effort to Prevent Price Manipulation: Evidence from India

Accounting and Finance Research ◽

10.5430/afr.v6n1p9 ◽

2016 ◽

Vol 6 (1) ◽

pp. 9

Author(s):

Kanaiyalal Shantilal Parmar ◽

Chakrapani Chaturvedula

Keyword(s):

Stock Returns ◽

Event Study ◽

Abnormal Returns ◽

Stock Exchanges ◽

Price Reaction ◽

Price Manipulation ◽

Surveillance Activity ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

Indian Stock Exchanges use trade for trade segment as part of surveillance activity to restrict the unwanted growth in prices to safeguard the interest of the investors. This paper studies the impact of the announcement to shift securities to trade for trade segment on stock returns and volatility of the stock returns using event study methodology. It was found that the securities have generated exorbitant positive average abnormal returns during 30 days in the pre event period, which led the exchanges to shift these stocks to trade for trade segment. The event is found to be significantly impacting average abnormal returns during 30 days in the post event period showing the negative price reaction. Also volatility of the stocks returns is found to be increasing post the announcement.

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Impact of Demonetization on the Indian Stock Market

Paradigm ◽

10.1177/0971890718788226 ◽

2018 ◽

Vol 22 (2) ◽

pp. 175-184 ◽

Cited By ~ 1

Author(s):

Deepika Upadhyay ◽

Swetha Wenona Suvarna

Keyword(s):

Stock Returns ◽

Event Study ◽

Prime Minister ◽

Stock Exchange ◽

Legal Tender ◽

Important Index ◽

Study Methodology ◽

Indian Stock Market ◽

The Impact ◽

Event Study Methodology

Demonetization is the act of eradicating a currency unit from circulation. Indian economy witnessed this on 8 November 2017 when Prime Minister Narendra Modi announced that the two highest denomination currency notes, that is, ₹500 and ₹1,000 ceased to be legal tender. As most of the transactions in the country are based on cash only, the announcement resulted into huge hue and cry nationwide. It was estimated that approximately 86 per cent of cash was washed off from circulation. The currency notes that were rendered invalid were replaced by the new currency notes of ₹500 and ₹2,000 later. The article intends to investigate the impact of demonetization on the Bombay Stock Exchange (BSE). An event study methodology has been used to analyse the impact of the announcement on its most important index—S&P (Standard & Poor’s) BSE SENSEX index and the 30 top trading stocks which comprise S&P BSE SENSEX. The study period is divided into pre- and post-demonetization announcement. The empirical results indicate that there was no striking impact of the demonetization announcement on the stock returns during the period of the study.

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Is the market swayed by press releases on corporate governance? Event study on the Eurostoxx banks

Corporate Ownership and Control ◽

10.22495/cocv15i3art2 ◽

2018 ◽

Vol 15 (3) ◽

pp. 23-31 ◽

Cited By ~ 2

Author(s):

Marina Brogi ◽

Valentina Lagasio

Keyword(s):

Corporate Governance ◽

Event Study ◽

Stock Prices ◽

Investment Decisions ◽

Press Releases ◽

European Banks ◽

Study Methodology ◽

The Impact ◽

Governance Disclosure ◽

Event Study Methodology

Are press releases on Corporate Governance price sensitive? What is the impact of Corporate Governance information on stock prices of banks? This paper addresses these questions by applying an event study methodology on 70 press releases published by the Euro area banks listed on the Eurostoxx banks Index, from 2007 to 2016. Systemic shocks are explored as well idiosyncratic ones. Our results show that investment decisions are significantly but negatively influenced by the disclosure of a press release on corporate governance as if this kind of news leads investors to perceive the banks’ prospects negatively. The best of our knowledge this is the first paper that investigates European banks press releases on corporate governance. Findings are relevant for banks’ management and their disclosure policy. Nonetheless, further research is needed to investigate differences and similarities between an area of governance disclosure and another.

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The 1990 Pennsylvania Antitakeover Law: Should Firms Opt Out of Antitakeover Legislation?

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x9601100205 ◽

1996 ◽

Vol 11 (2) ◽

pp. 223-246 ◽

Cited By ~ 7

Author(s):

L. Mick Swartz

Keyword(s):

Stock Returns ◽

Stock Prices ◽

Agency Cost ◽

Opting Out ◽

Percentage Points ◽

Opt Out ◽

Study Methodology ◽

The Impact ◽

Econometric Technique ◽

Event Study Methodology

This paper examines the firm's opting out decision and the impact of the 1990 Pennsylvania Antitakeover Law on the stock prices of 123 firms. The results indicate that on average Pennsylvania stock returns decreased by 9 percent from introduction to passage. A comparison indicates that firms that opted out had CARs 18 percentage points higher than firms that chose not to opt out. The event study methodology may not be appropriate because investors may anticipate the passage of legislation and because there may be multiple events. Intervention analysis, an econometric technique not previously used in this area, is applied and the results support the agency cost hypothesis. A logit model is implemented to find the sources of the losses and gains and to study why firms choose to opt out. In this model, firms are controlled for antitakeover amendments, takeover activity, insider holdings, large noninsider holdings, size, and industry. Firms with a proxy for lower agency costs were found to be more likely to opt out of the legislation.

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South–South Cooperation in South and East Asia: An Event Study of the China–Pakistan Economic Corridor

Global Business Review ◽

10.1177/0972150919850415 ◽

2019 ◽

Vol 21 (1) ◽

pp. 54-67

Author(s):

Wing Him Yeung ◽

Yilisha Pang ◽

Asad Aman

Keyword(s):

Stock Market ◽

East Asia ◽

Event Study ◽

Stock Exchange ◽

Global South ◽

Short Term ◽

Empirical Results ◽

Study Methodology ◽

The Impact ◽

Event Study Methodology

South–South cooperation has been on the rise in recent years. One of the latest examples is the China–Pakistan Economic Corridor (CPEC) proposed by the Chinese and Pakistani governments in 2013. Using event study methodology, this article examines the impact of events and announcements associated with CPEC on the Pakistan Stock Exchange in Pakistan and the Shanghai Stock Exchange in China. The first key finding of this article is that the initial announcement associated with CPEC had stronger and positive short-term impact on the Pakistan Stock Exchange in comparison with the impact of subsequent CPEC events on the stock market. The second key finding is that the short-term impact of the CPEC initial announcement was stronger on the Pakistan Stock Exchange than on the Shanghai Stock Exchange, possibly due to the substantial difference in the size of the two economies. The empirical results of this article have important implications for investors, corporations and regulators to the Global South.

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The Impact Of Analysts‟ Recommendations: Evidence From The Athens Stock Exchange

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v23i2.1403 ◽

2011 ◽

Vol 23 (2) ◽

Cited By ~ 1

Author(s):

Michalis Glezakos ◽

Anna Merika

Keyword(s):

Event Study ◽

Unique Feature ◽

Stock Exchange ◽

Point Of View ◽

Significant Excess ◽

Investment Opportunities ◽

Study Methodology ◽

Athens Stock Exchange ◽

The Impact ◽

Event Study Methodology

This study aims to investigate the usefulness of analysts’ recommendations on firms listed on the Athens Stock Exchange (ASE). It contradicts the majority of published works which conclude that analysts’ recommendations do offer valuable investment opportunities. The unique feature of this work is that it sheds light on the issue, adopting a practical approach stemming from the investor’s point of view. It is shown through an event study methodology, that analysts’ recommendations do not result to any significant excess returns.

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NASCAR Sponsorship And Shareholder Return: Some Preliminary Results

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v5i8.2569 ◽

2011 ◽

Vol 5 (8) ◽

Author(s):

William L. Huth

Keyword(s):

Stock Returns ◽

Event Study ◽

Financial Market ◽

Return On Investment ◽

Marketing Communication ◽

Communication Tool ◽

Font Size ◽

Publicly Traded ◽

Study Methodology ◽

Event Study Methodology

NASCAR sponsorship is a major investment for corporations that choose it as a marketing communication tool. Companies frequently spend in excess of $10 million to sponsor a car in the Nextel Cup series. This paper develops a return on investment measure for that spending using the financial market event study methodology where race day performance influence on publicly traded sponsoring firm’s stock returns is examined. Results for the 2005 NASCAR Nextel Cup season suggest that sponsorship of top 5 finishing cars generates significant positive returns for the sponsoring company shareholders.

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Stock Spams: Another Kind Of Stock Prices Manipulation

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v29i1.7557 ◽

2012 ◽

Vol 29 (1) ◽

pp. 79 ◽

Cited By ~ 7

Author(s):

Taoufik Bouraoui ◽

Mohamed Mehanaoui ◽

Bouchaib Bahli

Keyword(s):

Event Study ◽

Stock Prices ◽

Market Reaction ◽

Font Size ◽

Event Window ◽

Parametric Test ◽

Study Methodology ◽

Penny Stocks ◽

The Impact ◽

Event Study Methodology

This research investigates the market reaction to an information-based manipulation called stock spams. The impact is focused on the liquidity variable which is measured by Amivest ratio. Using the event study methodology on a sample of penny stocks for the period February 2006 through October 2008, our findings suggest positive and significant abnormal liquidities for stocks targeted by manipulators during the event window. Robustness checks were performed using a non-parametric test. These results support the thesis that this kind of manipulation is a very flourishing business that manipulators exploit by simply purchasing stocks at low prices and selling them at higher prices.

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